Renewable Energy Project Finance in Japan 2 (Amendment on the Act on Special Measures Concerning Renewable Energy Requiring Resident Briefings Effective April 1, 2024) | Articles

The amended Act on Special Measures Concerning Renewable Energy, effective from April 1, 2024, mandates the holding of resident briefings. Under the amended act, conducting briefings or prior notification measures for the following groups is a requirement for FIT (Feed-in Tariff) or FIP (Feed-in Premium) certification: (1) individuals residing within a certain distance from the boundary lines of the site where the renewable energy generation project is implemented (100 meters for low-voltage facilities (less than 50kW), 300 meters for special high-voltage facilities (50kW or more), and 1 km for projects subject to Type 1 environmental impact assessment); (2) owners of land and buildings adjacent to the site of the renewable energy generation project; and (3) individuals deemed necessary by the mayor of the municipality (amended Act on Special Measures Concerning Renewable Energy, Article 9, Paragraph 2, Item 7, and Paragraph 4, Item 6).
The difference between a briefing and prior notification measures depends on the power output. For special high-voltage facilities (50kW or more), a briefing is required, while for low-voltage facilities (less than 50kW), prior notification measures are generally sufficient (kW refers to the maximum power output per unit time of the power generation facility).
The renewable energy business operator must attend the briefing in person. If the operator is a corporation, a corporate officer or employee capable of providing sufficient and appropriate explanations must attend and explain the details. At the briefing, it is necessary to explain the project and construction overview, the status of land use rights acquisition, information about major investors of the certification applicant, and the potential impacts on the safety, landscape, natural environment, and living environment of the surrounding area, as well as preventive measures for these impacts.
Opportunities for questions and answers with residents of the surrounding area and owners of adjacent land must be provided, and the operator is required to respond sincerely to these questions and opinions. Additionally, the briefing must be recorded, and the recordings must be stored on a recording medium until the end of the FIT/FIP period.
Regarding “sincere responses,” elements include factual, accurate answers, and objective and specific responses. Violations of this requirement will result in strict measures such as denial or revocation of certification (as stated in the “Guidelines for the Implementation of Briefings and Prior Notification Measures” by the Agency for Natural Resources and Energy, February 2024, Chapter 3, Section 5, Page 21).
After the briefing, questions and opinions from residents of the surrounding area must be accepted for a period of more than two weeks, and the operator must respond sincerely in writing. The briefing must be held at least three months before the FIT/FIP certification application.
For renewable energy project finance based on FIT/FIP, various stakeholders, including financial institutions providing loans, local governments, and the Ministry of Economy, Trade, and Industry, which oversees FIT/FIP, are sensitive to the reactions of residents and businesses around the planned power plant site. Therefore, it is crucial for renewable energy business operators to provide sufficient and appropriate explanations during resident briefings.